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Brazilian Municipalities Exit BHP Dam Collapse Lawsuit

Financial Times Companies •
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A group of 19 Brazilian municipalities, including Mariana, have withdrawn from the UK High Court class action lawsuit against BHP over the 2015 Samarco dam collapse in favor of a local compensation scheme. The disaster, jointly owned by BHP and Vale, killed 19 people and affected 380,000 claimants seeking up to £36bn in damages. The Brazilian indemnity scheme, established in 2024, allocates R$170bn (about $33bn) in reparations over 20 years.

Joining the program requires withdrawing from the English litigation. This move is a setback for litigation firm Pogust Goodhead, which continues to represent 31 municipalities in the UK case and has faced internal challenges after the departure of its founding partner. The firm insists the withdrawals do not affect ongoing proceedings.

BHP stated the adherence ensures communities access resources under the Brazil agreement. A separate legal dispute involves Vinci SPS Capital seeking £43mn in interim costs awarded to claimants after a London judge ruled against BHP in November.